Eucatex S.a. Industria E Comercio · BMFBOVESPA:EUCA3
Eucatex S.a. Industria E Comercio — 2011 APIMEC Meeting
28 slides from Eucatex S.a. Industria E Comercio's conference presentation, Mar 23, 2011
Slide 1: 2011 APIMEC Meeting
2011 APIMEC Meeting March 23, 2011
Slide 2: Agenda
Agenda 60 years of Eucatex Production Units Eucatex’s Products Operational Data Forest Sustainability Sustainable Wood Recycling Indicators Financial Highlights IFRS Impacts Financial Data New Paint Plant in Ribeirão/PE Capital Market Competitive Advantages Contact 2
Slide 3: 60 years of Eucatex
60 years of Eucatex 1951 – Eucatex is founded 1955 – Beginning of exports, 70’s – Startup of Hardboard Line 80’s – Verticalization of production initially to Argentina. I (world’s largest press) 1995 – Inauguration of Paint and 1996 – First Brazilian company in 1996 – Inauguration of MDP Plant – 199
Slide 4: Production Units
Production Units Fiberboard Unit Location – Salto-SP Gross revenue in 2010 – R$ 298.5 million Area: Site – 540,000 m² Hardboard – 240,000 m² Built area – 153,000 m² Panels and Doors – 1.8 million pieces Number of employees – 805 Painting Capacity – 50 million m² MDP and Laminate Floori
Slide 5: Fiberboard
Fiberboard Capacity Utilization Market Share – Domestic Market 87% 86% 48% 52% 2009 2010 2009 2010 Costs Breakdown Sales Volume (Domestic) Base 100 – 2006 Electricity and Thermal 126 Power 122 15% Depreciation 116 108 107 110 8% 100 100 97 97 Labor 19% Raw Material 2006 2007 2008 2009 2010 58% Eucat
Slide 6: MDP
MDP Capacity Utilization Market Share – Domestic Market 84% 85% 15% 12% 2009 2010 2009 2010 Costs Breakdown Sales Volume (Domestic) Base 100 – 2006 Electricity and Thermal Power 135 Labor 8% 117 117 120 6% 111 112 114 Depreciation 110 10% 100 100 Raw Material 2006 2007 2008 2009 2010 76% Eucatex Mar
Slide 7: MDP Sales Mix
MDP Sales Mix Proportion of Eucatex coated MDP » Coated products account for a larger share of Eucatex’s sales mix than at other producers. In 2010, coated products, which have higher value added, represented Standard 96% of MDP exports. Coated 95% 96% 22% 2009 2010 2010 - Market Source: ABIPA Lacqu
Slide 8: Laminate Flooring
Laminate Flooring Capacity Utilization Market Share – Domestic Market 67% 48% 30% 36% 2009 2010 2009 2010 Costs Breakdown Sales Volume (Domestic) Base 100 – 2006 Labor Electricity and 198 8% Thermal Power 7% 160 Depreciation 2% 138 134 112 126 126 111 100 100 Raw Material 2006 2007 2008 2009 2010 83
Slide 9: Paint and Varnish
Paint and Varnish Capacity Utilization Market Share – Domestic Market 55% 45% 7% 8% 2009 2010 2009 2010 Costs Breakdown Sales Volume (Domestic) Base 100 – 2006 Electricity and Thermal Depreciation Labor Power 1% 253 7% 1% 206 Packaging 184 3% 152 140 125 111 120 100 100 Raw Material 88% 2006 2007 20
Slide 10: T-HDF / MDF
T-HDF / MDF Technical Data Product similar to MDF, but denser T-HDF and higher-quality First line in Brazil specializing in T-HDF Pioneer production 110 million m²/ year Installed Capacity or 275,000 m³/ year Additional Gross Revenue R$ 250 million Aerial view of Fiberboard Unit, T-HDF/MDF Line and
Slide 11: T-HDF / MDF
T-HDF / MDF © eucatex eucatex
Slide 12: Operating Data
Operating Data Revenue by Product 2010 2009 MDP 5% 5% 14% 10% 29% Hardboard 32% Paint 22% 22% Laminate Flooring 30% Others 31% Sales by Segment 2010 2009 3% 4% Furniture + Other Industries 45% Construction 47% 52% 49% Foreign Market 12
Slide 13: Forest Sustainability
Forest Sustainability 71 farms with eucalyptus plantations, totaling 45,900 hectares Average Radius of Salto – 158 km Average Radius of Botucatu – 19 km Forest Unit – Bofete/SP New Forests Planted 2007 2008 2009 2010 2011* 5,400 ha 4,500 ha 2,040 ha 4,080 ha 4,800 ha * Eucatex estimates Forests with
Slide 14: Sustainable Wood Recycling
Sustainable Wood Recycling • Thermal energy generation at low cost, saving forests planted by the company. • Total Processing Capacity – 240,000 tons/year • 240,000 tons/year correspond to approximately 470,000 m³ of standing wood or 1,500 hectares of forests. • Volume Processed in 2009 – 109,000 to
Slide 15: Indicators
Indicators Unemployment Rate Real Wage Bill (2005 Index=Base 100) 8.4% 172.67 7.4% 156.65 157.63 6.8% 6.8% 145.28 132.71 5.3% Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Consumer Confidence Index 125.1 121.8 121.9 122.5 120.1 120.9 118.8 115.7 116.5 114.4 112.4 113.1 110.8
Slide 16: Indicators: Incentive Measures to Construction
Indicators Incentive Measures to Construction – Federal Govt. % Mortgage on GDP Amendments to legislation: risk segregation , secured fiduciary sale; Denmark Dinamarca 100% USA Estados Unidos 78% Increase in maximum limit for use of FGTS funds from R$350,000 to R$500,000; South Africa África do Sul
Slide 17: 2010 Highlights
2010 Highlights Gross Revenue of R$ 988 million, up 19% from R$ 829 million in 2009; Gross margin of 32.2% in 2010, versus 29.6% in 2009; Recurring EBITDA of R$ 159 million, or 20% , versus R$ 118 million, or 17.7%, in 2009, for growth of 34%; Net Income of R$ 120 million in 2010, versus R$ 199 mill
Slide 18: IFRS Impacts
IFRS Impacts 4Q10 2010 IFRS 4Q10 AFTER IFRS 2010 AFTER FINANCIAL STATEMENTS (R$ MM) - 2010 BEFORE BEFORE ADJUSTMENTS IFRS ADJUSTMENTS IFRS IFRS IFRS Gross Revenue 214.3 214.3 794.0 794.0 Cost of Goods Sold (143.9) (143.9) (522.1) (522.1) . Increase of the useful life of assets (depreciation reductio
Slide 19: Financial Data
Financial Data Highlights (R$ MM) 4Q10 4Q09 Var. (%) 2010 2009 Var. (%) Net Revenue 214.3 183.9 16.5% 794.0 666.7 19.1% Cost of Good Sold (147.3) (128.8) 14.4% (538.6) (469.4) 14.7% Gross Income 67.0 55.1 21.6% 255.4 197.3 29.5% Gross Margin (%) 31.3% 30.0% 1.3 p.p. 32.2% 29.6% 2.6 p.p. Administrati
Slide 20: Financial Indicators
Financial Indicators NOR per Employee (R$) SG&A (R$ million) and SG&A / NOR (%) 23,0% 348,7 22,4% 314,7 323,5 20,2% 20,4% 19,8% 269,0 161,9 239,3 149,4 138,9 131,2 125,6 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Gross Income (R$ million) and Gross Margin (%) EBITDA (R$ million) and EBITDA ma
Slide 21: Financial Data: Capex
Financial Data Capex R$ Million 4Q10 R$ Million 2010 New T-HDF/MDF Line / Other Projects 27.6 New T-HDF/MDF Line / Other Projects 137.0 Forests 2.9 Forests 31.2 Sustentation 18.0 Sustentation 30.4 Total 48.5 Total 198.6 Sustentation New T- 15% HDF/MDF Sustentation Line / Other 37% Projects 57% Fores
Slide 22: Financial Data: Debt
Financial Data Debt (R$ MM) 2010 2009 Var. (% ) Short Term Debt 100.7 42.7 135.8% Long Term Debt 60.4 82.9 -27.1% Gross Debt 161.2 125.7 28.3% Cash and Cash Equivalents 5.5 4.2 30.0% Net Debt 155.7 121.4 28.2% % Short Term Debt 62% 34% 28.5 p.p. Net Debt/ EBITDA 1.0 1.0 -4.6% Net Debt vs. EBITDA Deb
Slide 23: New Paint Plant in Ribeirão/PE
New Paint Plant in Ribeirão/PE Project Data Product Water-Based Paints (initially) Installed Capacity in Liters 1.6 million liters / month Localização Estratégica Ribeirão/PE - 90 km de Recife/PE e 40 km do Porto de Suape Investments - 1st Phase R$ 10 million Jobs Created – 1st Phase 80 direct and i
Slide 24: Capital Market
Capital Market Performance: EUCA4 vs. IBOVESPA (Base 100) 330 03/18 R$ 8.74 280 12/30 R$ 7.20 177% 230 180 26% 130 20% 80 Ibovespa INDX Eucatex Ratios Shareholders’ Equity Trends 1000 900 800 Book Value per Share vs 0.7 700 Market Value 600 R$ million 500 400 300 200 4.2 100 Market Cap vs Ebitda 0 s
Slide 25: Competitive Advantages
Competitive Advantages Innovation, creativity and unique positioning. Strategic foothold in main consumer markets and national sales team. Partnerships with big foreign companies to supply products to global markets. Environmental responsibility: Green Seal (FSC) for all products, Environmental and
Slide 26: IR Contact
IR Contact José Antonio G. de Carvalho Executive VP and IRO Sergio Henrique Ribeiro Controller Waneska Bandeira Investor Relations (55 11) 3049-2473 ri@eucatex.com.br www.eucatex.com.br/ir 26
Slide 27: EUCATEX S.A. INDÚSTRIA E COMÉRCIO
EUCATEX S.A. INDÚSTRIA E COMÉRCIO
Slide 28: Disclaimer
Disclaimer This presentation includes forward-looking statements concerning the business prospects, projections and operating and financial targets Eucatex S.A. Indústria e Comércio, which are based on the beliefs and assumptions of management and on the information currently available to the compan
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